Best Forex Brokers For Hedging in 2018

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Hedging is an investment strategy. Traders employ this advanced type of strategy to protect their investments by mitigating losses. Hedging can be considered as a kind of insurance as it provides protection against losses if the outcome of a trade tends to be negative. This strategy works by reducing the trader’s exposure to different risks. This means that you “hedge” one investment through another investment. However, hedging cannot be considered as the Holy Grail which would ensure the safety of all your investments. It involves a cost. Insurance does not come free and it is the same in case of hedging too. When you employ the hedging strategy, the potential profits and losses also come down.

What is Forex Hedging ?

In the forex market, hedging provides protection to your investments against volatility and uncertainties. It refers to you involving in additional buying or selling of currency pairs to offset the risks associated with the original buy or sell order placed by you. You can think of hedging as insurance against your investments. You should use this strategy only if you have sufficient experience and you have a thorough understanding of the behavior of the currency market. Employing the hedging strategy without enough trading experience can result in disastrous consequences.

Top Forex Brokers for Hedging

Broker Info Bonus Open Account
HYCM Forex broker Min Deposit: $100
Spread: From 0,2 Pips
Leverage: 1:200
Regulation: FCA UK (#186171), CySEC (#259/14)
10% Welcome Bonus up to $5,000 Visit Broker
FBS Markets Inc forex broker Min Deposit: $1
Spread: From 0 Pips
Leverage: 3000:1
Regulation: CySEC, IFSC
$50 No-Deposit Bonus, 100% Deposit Bonus, Lucky T-shirt, iPhone 6s Plus Visit Broker
xm best forex broker Min Deposit: $5
Spread: From 0 Pips
Leverage: 500:1
Regulation: ASIC, CySEC, FCA (UK), IFSC Belize
“$30 Non-Deposit bonus, 50% +20% deposit bonus up to $5,000, Loyalty Program Bonus Visit Broker
exness forex broker review Min Deposit: $1
Spread: From 0 Pips
Leverage: 2000:1
Regulation: FCA UK, CySEC, FSP, BaFin, CRFIN
35% of the account Deposit Visit Broker
iq option best binary options brokers Min Deposit: $10
Spread:
Leverage:
Regulation: CySEC
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OCTAFX forex broker Min Deposit: $5
Spread: From 0.2 Pips
Leverage: 500:1
Regulation: FSA (Saint Vincent and the Grenadines), FCA UK (#679306)
50% Deposit Bonus Visit Broker
No Deposit Bonus Instaforex Broker Min Deposit: $1
Spread: Fixed Spread From 3 Pips
Leverage: Up to 1:1000
Regulation: CBR, CySEC and FFMS
30% Forex Deposit bonus Visit Broker
Pepperstone review best forex broker in Australia Min Deposit: $200
Spread: Starting 0 Pips
Leverage: 500:1
Regulation: ASIC Australia, FCA UK
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FXOpen ECN Broker Min Deposit: $300
Spread: floating, from 0 pips
Leverage: 500:1
Regulation: FCA UK reference number 579202
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ThinkMarkets Forex Broker regulated by ASIC and FCA UK Min Deposit: $250
Spread: as low as 0.1 pips
Leverage: up to 400:1
Regulation: ASIC Australia and FCA UK
Visit Broker

Forex Hedging Strategies

Best and Trusted Forex Brokers For HedgingThere are several hedging strategies that you can employ as a forex trader. Some are very simple, but some other are quite complex. These strategies should be implemented depending on your level of experience and preferences. You should also find out whether your brokerage will allow you to employ this strategy at all. Here is some information about the different hedging strategies:

Strategy #1: Simple Forex Hedging

Imagine that you are placing an order to buy the USD/EUR pair. Implementation of this strategy involves you placing the buy order and an order to sell the same pair at the same instant. The net profit may work out to be zero when the orders are open. However, you can mitigate the risk and earn a profit by properly timing the trades.

Strategy #2: Complex Hedging

If your broker does not allow hedging, you can implement the complex hedging strategy. It can be implemented in several different ways.

Strategy #3: Multiple Currency Pairs

This hedging strategy is different from the simple forex hedging strategy because it involves trading of two different sets of currency pairs.

Strategy #4: Forex Options

In this method, the trade is commenced at a pre-decided price as well as time frame. For example, you place an order at a specified price and also buy/sell the option at a price that is lower compared to the current price. If the trade touches the specified future price point within the targeted time frame, you gain. On the other hand, if the price reaches the strike level, you will lose. If it neither hits the price specified in the future or the strike level, you will lose on the option’s purchase price.

Do All Brokers Allow Hedging?

Hedging is popular among forex investors, but all brokers do not allow traders to implement the strategy. Many experts do not recommend hedging. Forex brokers based out of the U.S. strictly prohibit hedging. This is because of the FIFO (First In, First Out) policy instituted through laws in the U.S. Here is some information about a few brokers that allow hedging:

#1: XM.com

Founded: 2009
Number of Clients: 1,000,000
Trust Score: 99
Broker Type: Market Maker
Regulation: FCA UK, CySEC, ASIC
Spread for indices: starting from 0.6 points
Minimum Deposit: $5
Platforms offered: WebTrader, MT4, Mobile Apps
Account Types: Micro, Standard, XM Zero
Spread Type: Variable
Funding Methods: Credit/Debit Cards (Visa, Master, Maestro), Neteller, WebMoney, Skrill, FasaPay, Perfect Money, Bank Transfer, Bank Wire Transfer
Customer Support: Phone, Email

#2: FBS Markets Inc.

Founded: 2009
Number of Clients: over 7,000,000 traders
Broker Type: ECN/STP
Regulation: IFSC Belize and CySEC Cyprus
Minimum Deposit: $5
Platforms offered: MetaTrader 4, MetaTrader 5, WebTrader, Mobile platforms for Windows/iPhone/iPad/Android
Account Types: Standard, Cent, Micro, Zero Spread, ECN, Unlimited account
Spread Type: Fixed, Variable
Funding Methods: Skrill, Wire Transfer, Neteller, Credit Cards, Perfect Money, Webmoney, RBK Money, Cash U, Dixipay, etc.
Customer Support: Phone, Email, Chat

#3: ThinkMarkets

Founded: 2010
Number of Clients: 550,000
Trust Score: 78
Broker Type: ECN
Regulation: ASIC, FCA UK
Spread for indices: Starting from 0.1 points
Minimum Deposit: $250
Platforms offered: Trade Interceptor, MetaTrader 4, Mobile Apps
Account Types: Standard, Pro, Islamic Accounts
Spread Type: Variable
Funding Methods: Bank Wire Transfer, Credit/Debit Cards (Visa and Master), Neteller, Skrill, BitPay
Customer Support: Live Chat, Email, Phone

#4: eToro

Founded: 2006
Trust Score: 82
Number of Clients: 6,000,000
Broker Type: Market Maker
Regulation: CySEC, FCA UK
Spread for indices: 100 points
Minimum Deposit: $1000
Platforms offered: WebTrader, Mobile Apps
Account Types: Standard
Spread Type: Fixed
Funding Methods: Bank Transfer, Credit Cards, PayPal
Customer Support: Live Chat, Phone, Email

#5: Plus500

Founded: 2008
Number of Clients: 155,000
Trust Score: 79
Broker Type: Market Maker
Regulation: CySEC, ASIC, FCA UK
Spread for indices: 0.02 percent
Minimum Deposit: $100
Platforms offered: WebTrader, Mobile Apps
Account Types: Micro, Standard
Spread Type: Variable
Funding Methods: Debit/Credit cards (Visa and Master), PayPal, Skrill, Bank transfer
Customer Support: Live Chat, Email

#6: AvaTrade

Founded: 2006
Number of Clients: 200,000
Trust Score: 81
Broker Type: Market Maker
Regulation: Central Bank of Ireland; Financial Futures Association, Japan; FSB, South Africa; ASIC, Australia; and ISA, Israel
Spread for indices: 1.0 point
Minimum Deposit: $250
Platforms offered: MetaTrader 4, WebTrader, Mobile Apps
Account Types: Micro, Standard, VIP
Spread Type: Fixed and Variable
Funding Methods: – Bank Wire, PayPal, WebMoney, Skrill, Credit Card, Neteller, Prepaid Master Card, etc.
Customer Support: Live Chat, Phone, Email

#7: Pepperstone

Founded: 2010
Trust Score: 82
Broker Type: No Dealing Desk
Regulation: ASIC, FCA UK
Spread for indices: Starting from 0.3 points
Minimum Deposit: $200
Platforms offered: MT4, MT5, WebTrader, cTrader
Account Types: Standard, Razor, Swap Free, Active Traders
Spread Type: Fixed and Variable
Funding Methods: Credit/Debit Cards (Visa, Master), PayPal, POLI, China Union Pay, BPay, Skrill, Neteller, Qiwi Wallet, FasaPay, B2B
Customer Support: Live Chat, Phone, Email

#8: InstaForex

Founded: 2007
Number of Clients: more than 7,000,000
Trust Score: 80
Broker Type: No Dealing Desk
Regulation: CySEC, British Virgin Islands
Spread for indices: No Spread
Minimum Deposit: $1
Platforms offered: MetaTrader 4 and 5, IFX Options Terminal, Multiterminal, Mobile Apps
Account Types: Mini, VIP, Swap Free, Institutional, and Managed Accounts
Spread Type: Fixed
Funding Methods: RBKMoney, Qiwi, Skrill, Neteller, Yandex.Money, Visa/Master cards, Z-Payment, bank transfers, cash in broker’s offices
Customer Support: Phone, Email, Chat

#9: FXOpen UK

Founded: 2003, brokerage services started in 2005
Trust Score: 76
Broker Type: ECN/STP
Regulation: FCA, UK, ASIC
Minimum Deposit: $300
Platforms offered: MT4 Desktop, WebTrader, MT4 Mobile
Account Types: ECN, STP, Crypto
Spread Type: Variable
Funding Methods: Bank Wire Transfer, Credit/Debit Cards (Visa, Master), China Union Pay, WebMoney, Neteller, Skrill, Payza
Customer Support: Live chat, Email, Phone

#10: OCTAFX

Founded: 2011
Broker Type: ECN
Regulation: FCA UK, FSA
Spread for indices: Starting from 0.9 points
Minimum Deposit: $50
Platforms offered: MT4, MT5, cTrader
Account Types: Micro, Pro, ECN
Spread Type: Variable
Funding Methods: Bank Transfer, Neteller, Skrill
Customer Support: Live Chat, Email, Phone

#11: Tickmill

Founded: 2015
Trust Score: 72
Broker Type: Market Maker/ECN
Regulation: FCA UK
Spread for indices: 0.01 points
Minimum Deposit: $25
Platforms offered: MT4, MT5, Mobile Apps
Account Types: Classic, PRO, VIP
Spread Type: Variable
Funding Methods: Barclays, Visa, and Master Debit/Credit Cards; PayPal; Skrill; Neteller; Fasapay
Customer Support: Phone, Live Chat, E-mail

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